Correlation Between Haier Smart and FGI Industries
Can any of the company-specific risk be diversified away by investing in both Haier Smart and FGI Industries at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Haier Smart and FGI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and FGI Industries, you can compare the effects of market volatilities on Haier Smart and FGI Industries and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Haier Smart with a short position of FGI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and FGI Industries.
Diversification Opportunities for Haier Smart and FGI Industries
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Haier and FGI is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and FGI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGI Industries and Haier Smart is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Haier Smart Home are associated (or correlated) with FGI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGI Industries has no effect on the direction of Haier Smart i.e., Haier Smart and FGI Industries go up and down completely randomly.
Pair Corralation between Haier Smart and FGI Industries
Assuming the 90 days horizon Haier Smart Home is expected to generate 0.94 times more return on investment than FGI Industries. However, Haier Smart Home is 1.06 times less risky than FGI Industries. It trades about 0.02 of its potential returns per unit of risk. FGI Industries is currently generating about -0.03 per unit of risk. If you would invest 303.00 in Haier Smart Home on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Haier Smart Home or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Haier Smart Home vs. FGI Industries
Performance |
| Timeline |
| Haier Smart Home |
| FGI Industries |
Haier Smart and FGI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and FGI Industries
The main advantage of trading using opposite Haier Smart and FGI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, FGI Industries can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FGI Industries will offset losses from the drop in FGI Industries' long position.| Haier Smart vs. FGI Industries | Haier Smart vs. Viomi Technology ADR | Haier Smart vs. Traeger | Haier Smart vs. Mohawk Industries |
| FGI Industries vs. Bassett Furniture Industries | FGI Industries vs. Ethan Allen Interiors | FGI Industries vs. Natuzzi SpA | FGI Industries vs. Flexsteel Industries |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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